Deloitte happy with EC’s decision on audit market

Touche Tohmatsu
is happy with the European Commission (EC)’s decisive
consideration of the limiting civil liability for statutory auditors and audit

The big four firm said EC’s recommendation encouraged new entrants into the
audit market and protected European capital markets by ensuring audit firms
remained viable in an environment of increasing litigation and a lack of
sufficient insurance cover in the sector.

EC’s recommendation also proposed principles for member states when adopting
the recommendation, including limitations not applying in the case of
intentional misconduct by the auditor and a right to fair compensation by
damages parties.

Deloitte believes EC gave very careful consideration to issuing this
recommendation, and said it would help achieve the commission’s goals and

Further reading:

ACCA chief: ‘smaller auditors will disappear’

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